Comparative statements of retained earnings for Renn-Dever Corporation were as follows: RENN-DEVER CORPORATION Statements of Retained Earnings For the Years Ended December 31 2026 $7,182,952 3,588,700 273,000 989,950 $9,508,702 Balance at beginning of year Net income (loss) Deductions: Stock dividend (39,000 shares) Common shares retired (138,000 shares) Common stock cash dividends Balance at end of year At December 31, 2023, common shares consisted of the following: Common stock, 1,970,000 shares at $1 par Paid-in capital-excess of par 2025 $5,826,052 2,480,900 276,000 848,000 $7,182,952 $ 1,970,000 11,820,000 2024 $6,004,552 (178,500) $5,826,052 Required: Infer from the reports the events and transactions that affected Renn-Dever Corporation's retained earnings during 2024, 2025, and 2026. Prepare the journal entries that reflect those events and transactions. (Hint: In lieu of revenues and expenses, use an account titled "Income summary" to close net income or net loss.)
Q: REQUIRED: PREPARE UNADJUSTED TRIAL BALANCE. ADJUSTING ENTRIES, AND ADJUSTED TRIAL BALANCE McGuire…
A: Adjusting entries are those form of journal entries which are recorded generally at the end of…
Q: Melinda invests $330,000 in a City of Heflin bond that pays 4.8 percent interest. Melinda could have…
A: Bond :— It is one of the source of capital in which investors gets fixed interest periodically and…
Q: A restaurant selling hamburgers has fixed costs of $11,975 and sells the burgers for $4.50 each. The…
A: Break even is the point at which a business is neither in profits nor in losses. It is the point at…
Q: Journal entry worksheet 1 2 Date April 02 3 Note: Enter debits before credits. Record entry 4 5…
A: Journal Entry :— It is an act of recording transaction in books of account when it is occured or…
Q: The following information is available from Pavit Company for its operations in March: • Factory…
A: Variance - The amount by which a set of numbers deviates from the mean or average is measured by…
Q: 4. Selwyn's Service applied overhead on the basis of direct labor costs during the current year.…
A: Variance is the result of the amount of expected value and actual results. It can be calculated by…
Q: In need help with preparing the following for journal entries, balance and statement sheets. I would…
A: A journal entry is a form of accounting entry that is used to report a business transaction in a…
Q: Which of the following is business income for NOL purposes? Interest earned on savings account.…
A: If your deductions for the year are more than your income for the year, you may have a net operating…
Q: Based on your understanding and interpretation of current assets, and the operating cycle, provide 5…
A: The operating cycle represents the process of a block of money on the purchase of materials,…
Q: On April 1, Year 1, Greenway Corporation issues $20 million of 10%, 20-year bonds payable at par.…
A: Bonds: - Bonds are loan agreements between the bond issuer and an investor, in which the bond issuer…
Q: Prepare Cost of Production Report using FIFO Method.
A: Process cost accounting is one of the cost accounting method, where products has to go through…
Q: arris Fabrics computes its plantwide predetermined overhead rate annually on the basis of direct…
A: Answer : Predetermine overhead rate : Predetermine overhead rate = Fixed manufacturing rate +…
Q: 3. List and briefly discuss as many areas as you can in which an accepted method or technique is…
A: There are many approach that it possible these possibility can exist in various form that include…
Q: Boris Gardner started a CD distribution business, by investing part of his Heineken…
A: Every organization conducts a large number of financial transactions in its business. Organizations…
Q: Comprehensive Problem 2 Part 5: Optional work sheet Enter the unadjusted trial balance on a…
A: Workings:
Q: If your cost of goods sold for the year was $825,000, with beginning inventory of $240,000 and…
A: The inventory turnover ratio is a kind of efficiency ratio that indicates the number of times…
Q: Factory Overhead Rate, Entry for Applying Factory Overhead, and Factory Overhead Account Balance The…
A: Introduction: A predetermined overhead rate is a rate that is assigned to variable manufacturing…
Q: ARNOLD maintains its accounting records on the cash basis. During 2020, he collected P185,000 from…
A: To calculate total revenue we have to make adjustment in amount collected from clients for changes…
Q: Record the lending of $15,000 by Falcon on July 1, 2024.
A: A Journal entry is a primary entry that records financial transactions initially. The cash borrowed…
Q: REQUIRED: • Income statement of the year 2019 and 2020 only.
A: Income Statement An income statement is a financial statement that lists the revenue and expenses of…
Q: management accountants must earn a CMA designation in order to practice. management accountants…
A: Management accountants should maintain high level of professional competence whil discharging his…
Q: Bulla Corporation has two production departments, Machining and Customizing. The company uses a…
A: Overhead is the amount incurred on the manufacture of the goods. It includes the costs such as…
Q: Song earns $117,500 taxable income as an interior designer and is taxed at an average rate of 15…
A: The average tax rate is calculated as total taxes minus all taxable income. The average tax rate is…
Q: Given the following tax structure: Taxpayer Mae Pedro Salary $ 32,000 $ 49,000 Total tax $3,200 PPP
A: In a vertical equity system, an individual's personal income tax obligation grows in proportion to…
Q: Basic Company incurred the following costs in the production of 10,000 units of its main product,…
A: Contribution margin is the difference of sales and the total variable cost. Contribution margin is…
Q: Journal entry worksheet < 1 2 3 4 5 6 7 8 9 The company paid $800 cash for two weeks' salaries…
A: Journal entries are used to record transactions for the first time in accounting records.Journal…
Q: Prepare a statement of stockholders equity for the year ended June 30 20Y3. During the ended June…
A: Part 1:
Q: compute the adjusted balances of the following accounts: 4. General and administrative expenses…
A: 1. The general and administrative expenses are calculated by doing adjustments of prepaid expenses,…
Q: Cover-to-Cover Company is a manufacturer of shelving for books. The company has compiled the…
A: “Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: In 2021, Johnson Controls reported the following accounting items (in millions of dollars): Sales =…
A: Free cash flow the cash available for it's investors before paying any debts, dividend. It is…
Q: Can you answer the last three please
A: 1. Income Statement - Income Statement include income earned and expenses incurred during the…
Q: Jaybird Company operates in a highly competitive market where the market price for its product is…
A: Target costing is a costing concept which helps in calculating target cost so that desired level of…
Q: Mastery Problem: Cost-Volume-Profit Analysis Question Content Area Cost Behavior Cover-to-Cover…
A: "Since you have asked multiple questions, we will solve only one question for you. If you want any…
Q: Oslo Company prepared the following contribution format income statement based on a sales volume of…
A: Income Statement :— It is one of the financial statement that shows profitability of company during…
Q: Cost Behavior, High-Low Method, Pricing Decision St. Teresa's Medical Center (STMC) offers a…
A: The question is based on the concept of Cost Accounting. Under high low method variable cost is…
Q: Explain the tax implications of compensation in the form of salary and wages from the perspectives…
A: Tax Implication: the impact that a course of action or choice will have on the amount of taxes that…
Q: Jun. Jun. 5 Jun. 9 Jun. 14 Jun. 18 Jun. 21 Jun. 25 Jun. 28 Parker opened an accounting firm by c…
A: Journal entries: Journal entries Date Particulars Dr. Cr. 1st June office…
Q: Oslo Company prepared the following contribution format income statement based on a sales volume of…
A: Introduction: Operating leverage is a cost-accounting formula which calculates how much revenue can…
Q: You are required to provide calculations for the means test (asset and the Income test) and use this…
A: Calculation of Total assets test of the Tom and Rita brown: Home (Principal Residence)…
Q: Part 5: Optional work sheet Enter the unadjusted trial balance on a 10-column end-of-period…
A: Adjusting Entries - Adjusting Entries are required to adjust the expenses and income paid early or…
Q: d. Cost of the units started and completed during the period.
A: Equivalent unit refers to the units that are calculated based on the work done by the manufacturer…
Q: All the figures are in millions Please write down the formulas used to answer the question and use…
A: Solution Ratio analysis refers to the analysis various types of financial information in the…
Q: Explain and expand
A: Withholding tax is the tax which is the type of the tax which is required by the payer of the money…
Q: Accounting Karen purchase land value in a 100000 as virtual currency ship in given by her dad Who…
A: Under the section ,267(a), losses from sale or exchange of property,directly or indirectly, are…
Q: What would be the net annual cost of the following checking accounts? a. Monthly fee, $3.75;…
A: Interest is the amount charged or received on the borrowings or investments being made. Bank charges…
Q: The Molding Department is the second department in Paxton Company production process. The data below…
A: The equivalent units are calculated on the basis of the percentage of the work completed during the…
Q: Winslow Inc. manufactures and sells three types of shoes. The income statements prepared under the…
A: Absorption costing says that total costs incurred on manufacturing and production of product should…
Q: Salem Company has outstanding $100 million of 7% bonds, due in 7 years, and callable at 104. The…
A: Loss on redemption represents that the carrying value of the bond is lower than the amount paid for…
Q: Required information [The following information applies to the questions displayed below.] The…
A: Every business conducts a large number of transactions, such as sales, purchases, payment of…
Q: For the past several years, Jolene Upton has operated a part-time consulting business from her home.…
A: Journal Entries - Journal Entries are the recording of transactions of the organization. It is…
Every entry should have narration please
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- Given the following year-end information, compute Greenwood Corporations basic and diluted earnings per share. Net income, 15,000 The income tax rate, 30% 4,000 shares of common stock were outstanding the entire year. shares of 10%, 50 par (and issuance price) convertible preferred stock were outstanding the entire year. Dividends of 2,500 were declared on this stock during the year. Each share of preferred stock is convertible into 5 shares of common stock.Lyon Company shows the following condensed income statement information for the year ended December 31, 2019: Lyon declared dividends of 6,000 on preferred stock and 17,280 on common stock. At the beginning of 2019, 10,000 shares of common stock were outstanding. On May 1, 2019, the company issued 2,000 additional common shares, and on October 31, 2019, it issued a 20% stock dividend on its common stock. The preferred stock is not convertible. Required: 1. Compute the 2019 basic earnings per share. 2. Show the 2019 income statement disclosure of basic earnings per share. 3. Draft a related note to accompany the 2019 financial statements.Chen Corporation began 2012 with the following stockholders equity balances: The following selected transactions and events occurred during the year: a. Issued 10,000 shares of common stock for 60,000. b. Purchased 1,200 shares of treasury stock for 4,800. c. Sold 2,000 shares of treasury stock for 11,000. d. Generated net income of 94,000. e. Declared and paid the full years dividend on preferred stock and a dividend of 1.00 per share on common stock outstanding at the end of the year. Chen Corporation maintains several paid-in capital accounts (Paid-in Capital in Excess of Par, Paid-in Capital from Treasury Stock, etc.) in its ledger, but combines them all as Additional paid-in capital when preparing financial statements.
- Selected transactions completed by Equinox Products Inc. during the fiscal year ended December 31, 2016, were as follows: a. Issued 15,000 shares of 20 par common stock at 30, receiving cash. b. Issued 4, 000 shares of 80 par preferred 5% stock at 100, receiving cash. c. Issued 500,000 of 10-year, 5% bonds at 104, with interest payable semiannually. d. Declared a quarterly dividend of 0.50 per share on common stock and 1.00 per share on preferred stock. On the date of record, 100,000 shares of common stock were outstanding, no treasury shares were held, and 20,000 shares of preferred stock were outstanding. e. Paid the cash dividends declared in (d). f. Purchased 7,500 shares of Solstice Corp. at 40 per share, plus a 150 brokerage commission. The investment is classified as an available-for-sale investment. g. Purchased 8,000 shares of treasury common stock at 33 per share. h. Purchased 40,000 shares of Pinkberry Co. stock directly from the founders for 24 per share. Pinkberry has 125,000 shares issued and outstanding. Equinox Products Inc. treated the investment as an equity method investment. i. Declared a 1.00 quarterly cash dividend per share on preferred stock. On the date of record, 20,000 shares of preferred stock had been issued. j. Paid the cash dividends to the preferred stockholders. k. Received 27,500 dividend from Pinkberry Co. investment in (h). l. Purchased 90,000 of Dream Inc. 10-year, 5% bonds, directly from the issuing company, at their face amount plus accrued interest of 37 5. The bonds are classified as a held-to-maturity long -term investment. m. Sold, at 38 per share, 2,600 shares of treasury common stock purchased in (g). n. Received a dividend of 0 .60 per share from the Solstice Corp. investment in (f). o. Sold 1,000 shares of Solstice Corp. at 45, including commission. p. Recorded the payment of semiannual interest on the bonds issue d in (c) and the amortization of the premium for six months. The amortization is determined using the straight-line method . q. Accrued interest for three months on the Dream Inc. bonds purchased in (I). r. Pinkberry Co. recorded total earnings of 240 ,000. Equinox Products recorded equity earnings for its share of Pinkberry Co. net income. s. The fair value for Solstice Corp. stock was 39. 02 per share on December 31, 2016. The investment is adjusted to fair value , using a valuation allowance account. Assume Valuation Allowance for Available-for-Sale Investments h ad a beginning balance of zero. Instructions 1. Journalize the selected transactions. 2. After all of the transaction s for the year ended December 31, 201 6, had been poste d [including the transactions recorded in part (1) and all adjusting entries), the data that follows were taken from the records of Equinox Products Inc. a. Prepare a multiple-step in come statement for the year ended December 31, 201 6, concluding with earnings per share . In computing earnings per share, assume that the average number of common shares outstanding was 100,000 and preferred dividends were 100,000. ( Round earnings per share to the nearest cent.) b. Prepare a retained earnings statement for the year ended December 31, 20 6. c. Prepare a balance sheet in report form as of December 31, 2016.Chen Corporation began 2012 with the following stockholders equity balances: The following selected transactions and events occurred during the year: a. Issued 10,000 shares of common stock for 60,000. b. Purchased 1,200 shares of treasury stock for 4,800. c. Sold 2,000 shares of treasury stock for 11,000. d. Generated net income of 94,000. e. Declared and paid the full years dividend on preferred stock and a dividend of 1.00 per share on common stock outstanding at the end of the year. Chen Corporation maintains several paid-in capital accounts (Paid-in Capital in Excess of Par, Paid-in Capital from Treasury Stock, etc.) in its ledger, but combines them all as Additional paid-in capital when preparing financial statements. Open the file STOCKEQ from the website for this book at cengagebrain.com. Enter the formulas in the appropriate cells on the worksheet. Then fill in the columns to show the effect of each of the selected transactions and events listed earlier. Enter your name in cell A1. Save the completed worksheet as STOCKEQ2. Print the worksheet. Also print your formulas. Check figure: Total stockholders equity balance at 12/31/12 (cell G21). 398,800.Chen Corporation began 2012 with the following stockholders equity balances: The following selected transactions and events occurred during the year: a. Issued 10,000 shares of common stock for 60,000. b. Purchased 1,200 shares of treasury stock for 4,800. c. Sold 2,000 shares of treasury stock for 11,000. d. Generated net income of 94,000. e. Declared and paid the full years dividend on preferred stock and a dividend of 1.00 per share on common stock outstanding at the end of the year. Chen Corporation maintains several paid-in capital accounts (Paid-in Capital in Excess of Par, Paid-in Capital from Treasury Stock, etc.) in its ledger, but combines them all as Additional paid-in capital when preparing financial statements. In the space provided below, prepare the stockholders equity section of Chen Corporations balance sheet as of December 31, 2012. Use proper headings and provide full disclosure of all appropriate information. Chens corporate charter authorizes the issuance of 1,000 shares of preferred stock and 100,000 shares of common stock.
- Raun Company had the following equity items as of December 31, 2019: Preferred stock, 9% cumulative, 100 par, convertible Paid-in capital in excess of par value on preferred stock Common stock, 1 stated value Paid-in capital in excess of stated value on common stock| Retained earnings The following additional information about Raun was available for the year ended December 31, 2019: 1. There were 2 million shares of preferred stock authorized, of which 1 million were outstanding. All 1 million shares outstanding were issued on January 2, 2016, for 120 a share. The preferred stock is convertible into common stock on a 1-for-1 basis until December 31, 2025; thereafter, the preferred stock ceases to be convertible and is callable at par value by the company. No preferred stock has been converted into common stock, and there were no dividends in arrears at December 31, 2019. 2. The common stock has been issued at amounts above stated value per share since incorporation in 2002. Of the 5 million shares authorized, 3,580,000 were outstanding at January 1, 2019. The market price of the outstanding common stock has increased slowly but consistently for the last 5 years. 3. Raun has an employee share option plan where certain key employees and officers may purchase shares of common stock at 100% of the marker price at the date of the option grant. All options are exercisable in installments of one-third each year, commencing 1 year after the date of the grant, and expire if not exercised within 4 years of the grant date. On January 1, 2019, options for 70,000 shares were outstanding at prices ranging from 47 to 83 a share. Options for 20,000 shares were exercised at 47 to 79 a share during 2019. During 2019, no options expired and additional options for 15,000 shares were granted at 86 a share. The 65,000 options outstanding at December 31, 2019, were exercisable at 54 to 86 a share; of these, 30,000 were exercisable at that date at prices ranging from 54 to 79 a share. 4. Raun also has an employee share purchase plan whereby the company pays one-half and the employee pays one-half of the market price of the stock at the date of the subscription. During 2019, employees subscribed to 60,000 shares at an average price of 87 a share. All 60,000 shares were paid for and issued late in September 2019. 5. On December 31, 2019, there was a total of 355,000 shares of common stock set aside for the granting of future share options and for future purchases under the employee share purchase plan. The only changes in the shareholders equity for 2019 were those described previously, the 2019 net income, and the cash dividends paid. Required: Prepare the shareholders equity section of Rauns balance sheet at December 31, 2019. Substitute, where appropriate, Xs for unknown dollar amounts. Use good form and provide full disclosure. Write appropriate notes as they should appear in the publisher financial statements.CASH DIVIDENDS, STOCK DIVIDEND, AND STOCK SPLIT During the year ended December 31, 20--, Baggio Company completed the following transactions: Apr. 15 Declared a semiannual dividend of 0.65 per share on preferred stock and 0.45 per share on common stock to shareholders of record on May 5, payable on May 10. Currently, 6,000 shares of 50 par preferred stock and 70,000 shares of 1 par common stock are outstanding. May 10 Paid the cash dividends. Oct. 15 Declared semiannual dividend of 0.65 per share on preferred stock and 0.45 per share on common stock to shareholders of record on November 5, payable on November 20. Nov. 20 Paid the cash dividends. 22 Declared a 10% stock dividend to shareholders of record on December 8, distributable on December 16. Market value of the common stock was estimated at 15 per share. Dec. 16 Issued certificates for common stock dividend. 20 Board of directors declared a two-for-one common stock split. REQUIRED Prepare journal entries for the transactions.Income Statement, Lower Portion Cunningham Company reports a retained earnings balance of 365,200 at the beginning of 2019. For the year ended December 31, 2019, the company reports pretax income from continuing operations of 150,500. The following information is also available pertaining to 2019: 1. The company declared and paid a 0.72 cash dividend per share on the 30,000 shares of common stock that were outstanding the entire year. 2. The company incurred a pretax 21,000 loss as a result of an earthquake, which is not unusual for the area. This is included in the 150,500 income from continuing operations. 3. The company sold Division P (a component of the company) in May. From January through May, Division P had incurred a pretax loss from operations of 33,000. A pretax gain of 15,000 was recognized on the sale of Division P. Required: Assuming that all the pretax items are subject to a 30% income tax rate: 1. Complete the lower portion of Cunningham's 2019 income statement beginning with Pretax Income from Continuing Operations. Include any related note to the financial statements. 2. Prepare an accompanying retained earnings statement.
- The income statement, statement of retained earnings, and balance sheet for Somerville Company are as follows: Includes both state and federal taxes. Refer to the information for Somerville Company on the previous pages. Required: Note: Round answers to two decimal places. 1. Compute the number of common shares. 2. Compute earnings per share.Treasury Stock, Cost Method Bush-Caine Company reported the following data on its December 31, 2018, balance sheet: The following transactions were reported by the company during 2019: 1. Reacquired 200 shares of its preferred stock at 57 per share. 2. Reacquired 500 shares of its common stock at 16 per share. 3. Sold 100 shares of preferred treasury stock at 58 per share. 4. Sold 200 shares of common treasury stock at 17 per share. 5. Sold 100 shares of common treasury stock at 9 per share. 6. Retired the shares of common stock remaining in the treasury. The company maintains separate treasury stock accounts and related additional paid-in capital accounts for each class of stock. Required: 1. Prepare the journal entries required to record the treasury stock transactions using the cost method. 2. Assuming the company earned a net income in 2019 of 30.000 and declared and paid dividends of 10,000, prepare the shareholders equity section of its balance sheet at December 31, 2019.The following selected accounts appear in the ledger of EJ Construction Inc. at the beginning of the current fiscal year: During the year, the corporation completed a number of transactions affecting the stockholders equity. They are summarized as follows: a. Issued 500,000 shares of common stock at 8, receiving cash. b. Issued 10,000 shares of preferred 1% stock at 60. c. Purchased 50,000 shares of treasury common for 7 per share. d. Sold 20,000 shares of treasury common for 9 per share. e. Sold 5,000 shares of treasury common for 6 per share. f. Declared cash dividends of 0.50 per share on preferred stock and 0.08 per share on common stock. g. Paid the cash dividends. Instructions Journalize the entries to record the transactions. Identify each entry by letter.